African Gold Group, Inc. (TSX-V: AGG, OTC: AGGFF, FRA: 3A61)
(“
AGG” or the “
Company”) is
pleased to announce a year-end shareholder letter from AGG Chief
Executive Officer, Danny Callow.
Dear Investors and
Shareholders,
As we all head into the holiday season, the AGG
team has lots to celebrate and reflect on! 2021 was a
transformative year for African Gold Group as we laid the
groundwork to dramatically accelerate the Company’s growth into
2022 and beyond.
Throughout this past year, we achieved several
corporate and operational milestones, some of which included
reducing overhead costs substantially through a corporate
restructuring, strengthening our leadership team, delivery of a
substantially improved definitive feasibility study
(“DFS”), delivery of our updated Environmental and
Social Impact Assessment (“ESIA”), award of a new
Environmental Permit and extension of our exploration licenses. The
long journey to prepare the Kobada Gold Project for the next stage
is now entering the most exciting and rewarding phase.
Definitive Feasibility
Study
The majority of 2021 has been largely focused on
the delivery of an updated definitive feasibility study for the
Kobada Gold Project (the “Project” or
“Kobada”), which was delivered in October 2021.
Over the past two years we have worked tirelessly on the technical
elements of the project to demonstrate that the Kobada project has
the potential to be one of the largest new gold projects in West
Africa. Since new management took over in August 2019, and with new
drilling campaigns totaling more than 18,000 metres, we have
managed to increase our reserve base by 144% (66% increase over the
2020 DFS) and our measured and indicated resource more than
40%.
With our updated 2021 DFS we have shown that
Kobada has the potential to produce over 1.2 mln oz of gold over a
16-year mine life while delivering solid economics with post-tax
NPV5% of US$355 million and an IRR of 38%.
Expansion of Leadership
Team
We have continued to streamline our corporate
overheads and bringing onto our board experienced directors. We
have identified a strong operational team to bring on board at the
right time to take Kobada into construction. All of these key
personnel have extensive experience in building and operating mines
in Africa.
Environmental and Social Impact
Assessment
In the second half of 2021, the Ministry of
Environment, Sanitation and Sustainable Development of the Republic
of Mali has approved the Environmental and Social Impact Assessment
for the Kobada Gold Project and issued an updated Environmental
Permit. The approval of ESIA marks a key milestone in the
permitting process and is the culmination of extensive
consultations and stakeholder engagement.
Other Permits
In the second half of 2021, the Company received
crucially important renewal and extension of the Kobada Est
exploration permit for a period of three years. The Kobada Est
exploration permit covers an area of 7,700 hectares and forms part
of the Kobada Gold Project’s highly prospective contiguous
exploration and mining permits, totalling 25,770 hectares.
In addition, the company’s contiguous Faraba
permit was also renewed by the Ministry of Mines for a further 3
years, and significant upside potential exists for expanding the
mineral resource estimate through further exploration.
Looking Forward to 2022
As we move into 2022, the principal focus of our
growth strategy next year is to complete the financing of the
Project so that we can move into construction phase.
AGG’s team and I would like to thank all of our
shareholders for your continued support. None of our progress and
the opportunity that lies ahead would be possible without you. The
last year has been both a challenging and exciting period for
African Gold Group, as we have positioned the Company to execute on
its ambitious agenda for 2022. I believe 2022 will be a year of
significant success for the African Gold Group and, as a result,
shareholder value.
From all of us at African Gold Group, we wish
you a very safe and happy holiday season and look forwards to
engaging with all shareholders once again in 2022.
About African Gold Group
African Gold Group is a TSX Venture Exchange
(TSX-V: AGG) listed exploration and development company with a
focus on building Africa’s next mid-tier gold producer. The Company
has a highly experienced board and management team with a proven
track record in the African mining sector operating mines from
development through to production. AGG’s principal asset is the
Kobada Project in southern Mali, which is in an advanced stage of
development having completed the 2021 DFS and is targeting gold
production of 100,000 oz per annum. As well as the initial Kobada
Gold Project, other exploration locations have been identified on
the Kobada, Farada and Kobada Est concessions, offering potential
for an increase in resource. For more information regarding African
Gold Group visit our website at www.africangoldgroup.com.
For more information:
Danny CallowPresident and Chief Executive Officer+
(27) 76 411 3803Danny.Callow@africangoldgroup.com |
Daniyal BaizakVice President, Corporate
Development +1 (647) 835
9617Daniyal.Baizak@africangoldgroup.com |
|
|
Scott EldridgeNon-Executive Chairman of the
Board+1 (604) 722 5381Scott.Eldridge@africangoldgroup.com |
Camarco (Financial PR)Gordon Poole / Charlotte
Hollinshead +44 (0) 20 3757 4997AfricanGoldGroup@camarco.co.uk |
|
|
Cautionary statements
This press release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Forward-looking information includes, but is not
limited to, statements regarding, the Offering, production
potential and economics of the Project, upside potential of the
Project, drilling and exploration plans of the Company, and
development timetable with respect the Project. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as “plans”, “expects” or “does not
expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”, or
“believes”, or variations of such words and phrases or statements
that certain actions, events or results “may”, “could”, “would”,
“might” or “will be taken”, “occur” or “be achieved”.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of AGG to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: receipt
of necessary approvals for the Offering and the Kobada Gold
Project; general business, economic, competitive, political and
social uncertainties; future prices of mineral prices; accidents,
labour disputes and shortages; available infrastructure and
supplies; the COVID-19 pandemic and other risks of the mining
industry. Although AGG has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking information. AGG does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”) or any state securities laws
and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
NEITHER TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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